What Is Household In Circular Flow? Households purchase goods and services, which businesses provide through the product market. Businesses, meanwhile, need resources in order to produce goods and services. Members of households provide labor to businesses through the resource market. In turn, businesses convert those resources into goods and services. What flows from businesses to
What Are The Flows In This Circular Flow Model? One of the most useful is the circular flow model. The circular flow model highlights the “flows” within the economy—the flow of economic resources, goods and services, and the flow of money. What are two flows in the circular model? Money flow and real flow are
What Economic Activities Flow From Businesses To Households? What economic activities flow from businesses to households? Businesses sell goods and services to households, earning revenue and generating profits. Businesses also pay wages, interest and profits to households in return for the use of their factors of production. Governments levy taxes on households and businesses in